Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZX posts 22% rise in FY profit on strong market activity

NZX posts 22 percent rise in annual profit as strong activity in capital markets offsets weaker Agri unit

By Tina Morrison

Feb. 21 (BusinessDesk) – NZX, New Zealand’s stock exchange operator, posted a 22 percent rise in annual profit as strong activity in capital markets offset a weaker performance from its Agri division.

Profit increased to $12.1 million in calendar 2013, from $9.9 million in 2012, the Wellington-based company said in a statement. The result lagged First NZ Capital’s $14 million profit estimate. NZX took a $2.6 million charge in 2013 to write down the value of investments in Clear Grain Exchange and NewsRoom.

New Zealand’s stock exchange operator has benefited the past year from a revival in companies coming to market as the government partially privatised energy companies MightyRiverPower and Meridian Energy and sold part of its holding in Air New Zealand while privately owned businesses such as Z Energy, SLI Systems and Synlait Milk also publicly listed. Still, the record year for initial public offerings and equity trading activity is unlikely to be repeated in 2014 as the government has just one asset, Genesis Energy, slated for listing and the remaining offerings are expected to be much smaller.

“Activity in New Zealand’s capital markets in 2013 was at its highest in more than a decade which clearly has a direct and positive impact on NZX’s financial performance,” chief executive Tim Bennett said. “We see a good IPO pipeline with Genesis expected in the first half of the year, however the rest of the IPO pipeline will continue to be small to mid-sized businesses that need capital to grow so we will have quite a different profile to what we had last year.”

Shares in NZX fell 0.8 percent to $1.26 and have advanced 2.4 percent this year.

Still, securities trading and clearing volumes are expected to remain robust and will benefit from the flow on effect of listings and sell-dons of strategic holdings during 2013, he said.

The company didn’t provide an explicit forecast for 2014 earnings.

In 2013, sales rose 12 percent to $62.8 million, while expenses increased 9 percent to $37 million.

The company’s capital markets business boosted revenue 18 percent to $34.9 million as it benefited from 10 new listings worth $7.5 billion. The listing fees associated with the IPOs have contributed to the latest earnings and will continue to add to annual listing, trading and clearing revenues, the company said.

Revenue from agricultural information slipped 2.9 percent to $12 million as it was impacted by severe drought conditions. Still, while revenue fell 7.6 percent in the first half, it gained 1.8 percent in the second half as the sector recovered, the company said.

NZX’s third largest unit, market operations, boosted revenue 19 percent to $11.9 million as it benefited from a full-year of the operation of the Fonterra Shareholders’ Market and its energy business gained additional revenue from development contract work for the Electricity Authority in the first half.

The company wrote down the value of its Australian Clear Grain Exchange business by $2.4 million to $4.7 million following a disappointing trading year with revenues down 22 percent. NZX also wrote down the value of Newsroom by $200,000, ahead of its sale last month.

NZX will pay a dividend of 1.6 cents a share on March 21.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news